Why Telecom Companies Love the Growing Text Market

Nielsen (NYSE:NLSN) reports that individuals ages 13-17 exchange an average of approximately 3,417 texts/month, while those ages 18-24 exchange 1,914 texts/month. Adults in the U.S. sent an estimated average of 41.5 texts/day as of this spring, up from 39.1 the year before, says a survey by Pew Internet. The most active users by far were 18-24 year-olds with an average of 109.5 texts/day.

Carriers probably don’t mind that the rise in texting is leading to less voice usage, given the fact that text messaging comes with huge profit margins. Here are how telecoms are trading on the news:

Verizon Communications Inc. (NYSE:VZ): VZ shares recently traded at $38.45, up $0.19, or 0.5%. They have traded in a 52-week range of $32.28 to $38.95. Volume today was 6,235,831 shares versus a 3-month average volume of 15,415,500 shares. The company’s trailing P/E is 15.46, while trailing earnings are $2.49 per share. Get the most recent company news and stock data here >>

Sprint Nextel Corp. (NYSE:S): S shares recently traded at $2.23, down $0.04, or 1.76%. They have traded in a 52-week range of $2.10 to $6.45. Volume today was 26,049,793 shares versus a 3-month average volume of 59,954,600 shares. The company’s trailing earnings are $-0.84 per share. Get the most recent company news and stock data here >>

AT&T, Inc. (NYSE:T): T shares recently traded at $28.79, down $0.02, or 0.07%. They have traded in a 52-week range of $27.20 to $31.94. Volume today was 17,088,841 shares versus a 3-month average volume of 28,635,100 shares. The company’s trailing P/E is 14.61, while trailing earnings are $1.97 per share. Get the most recent company news and stock data here >>

MetroPCS Communications, Inc. (NYSE:PCS): PCS shares recently traded at $8.43, up $0.24, or 2.93%. They have traded in a 52-week range of $7.51 to $18.79. Volume today was 3,369,067 shares versus a 3-month average volume of 5,297,670 shares. The company’s trailing P/E is 13.77, while trailing earnings are $0.61 per share. Get the most recent company news and stock data here >>

Leap Wireless International Inc. (NASDAQ:LEAP): LEAP shares recently traded at $8.12, up $0.36, or 4.64%. They have traded in a 52-week range of $5.50 to $17.66. Volume today was 1,459,184 shares versus a 3-month average volume of 2,085,190 shares. The company’s trailing earnings are $-6.28 per share. Get the most recent company news and stock data here >>